HanesBrands To Acquire Maidenform

Expected To Close In 4th Quarter

North Carolina-based supplier HanesBrands (asi/59528) has agreed to acquire underwear maker Maidenform Brands for nearly $548 million, the companies have announced. The deal, which is expected to close in the fourth quarter, has been approved by boards from both firms.

"This business is a natural fit into our core business and meets all of our acquisition criteria," said Richard Noll, chairman and CEO of HanesBrands. "We don't have nearly as strong of a business in shapewear, so we think our ability to tap into their expertise and expand it across our portfolio of brands makes a lot of sense."

In addition to Maidenform wear, the agreement will provide HanesBrands with several new brands to offer, including Flexees and Self Expressions. Maidenform, according to reports, had been considering its strategic options and decided a deal with HanesBrands would allow for the most growth potential. Presently, Maidenform sources its products from third parties, but will now be able to leverage the company-owned manufacturing resources of HanesBrands.

HanesBrands, which reported Q1 sales of $945 million, will pay for Maidenform with cash and through short-term borrowings. The acquisition is expected to result in more than $500 million in incremental annual sales for HanesBrands by 2017.